Conversational AI is transforming the insurance industry, particularly in claims processing, by enhancing efficiency, reducing operational costs, and improving customer satisfaction. This technology, through natural language processing and machine learning, enables insurers to streamline claims handling, offer real-time support, and provide personalized experiences to customers. By automating routine tasks, AI reduces human error and accelerates claim resolutions, benefiting both customers and insurers. However, challenges remain in terms of data security, privacy, and ensuring AI’s empathetic responses. This paper explores the impact of Conversational AI on customer satisfaction in claims processing,
examining its benefits, limitations, and future potential. As the technology evolves, integrating AI with complementary innovations like blockchain and IoT will further enhance the insurance landscape. The future of insurance will rely heavily on balanced, transparent AI systems that improve service delivery
while maintaining human oversight.